Catherine Murphy
Question:4. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will set out plans to support SMEs in the context of rising energy costs. [45400/22]
View answerSmall and Medium Enterprises
Questions (4)
Written answers
I think it is fair to say that this Government has not been found wanting when it has come to helping businesses get through difficult periods. The multi-billion euro financial assistance provided by Government during the pandemic was unprecedented, whether it was help with businesses’ wage bill so they could keep staff on, their overheads, the introduction of a cheaper, easier way to restructure and survive than examinership; the commercial rates waiver, or the reduction in VAT for the hospitality sector.
I'm very conscious of how worried businesses are now going into the winter and their concerns around energy costs. Unfortunately, Putin’s invasion of Ukraine is having massive consequences for the whole of Europe, not just Ireland.
The Government has already implemented measures to help ease the impact on enterprises of rising energy costs, including a temporary reduction in the excise duties charged, by 20 cent per litre of petrol, 15 cent per litre of diesel, and 2 cent in the excise duty charged on marked gas oil.
We are working on new proposals to help businesses with rapidly rising energy prices and I hope to be able to make a positive announcement about that in the Budget.
We’ll also be looking to raise awareness around energy efficiency, helping businesses reduce the amount of energy they use in the first place and improving take-up of the approximately 20 different schemes we already have in place for business.
For example, in June we announced a new €55 million ‘Green Transition’ fund to help businesses move away from fossil fuels and towards more sustainable, cheaper alternatives.
Questions Nos. 5 and 6 answered orally.
Job Losses
Questions (7)
Martin Kenny
Question:7. Deputy Martin Kenny asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on the engagement that his Department has had with the people of Collooney, County Sligo following the loss of 80 jobs with the closure of a site (details supplied); and if he will make a statement on the matter. [45172/22]
View answerWritten answers
I was deeply saddened by the announcement earlier this year by B.Braun and my sympathies are with the employees and their families. IDA Ireland has been working closely with the company to try to find a solution for the company but unfortunately, a solution could not be found. As the Deputy is aware, the company made the decision to move a significant portion of its operations to third parties.
My Department, through IDA Ireland has activated the Job Loss Protocol which is a co-ordinated response plan implemented by an interagency group based in the region. The group consists of IDA Ireland, Enterprise Ireland, Department of Social Protection, Local Enterprise Office, North West Regional Skills, Mayo Sligo Leitrim Education Training Board and IT Sligo.
The IDA organised a meeting of the group, providing an opportunity for the company to communicate its plans and coordinate a comprehensive support response over the next 18 months. I'm informed that the planned closure of B Braun will take place in a phased manner and the first redundancies will not take effect until the end of 2022. Furthermore, the company remains committed to its R&D activities in the region. In anticipation of this timeline, the IDA is supporting the company locally and at corporate level.
Each member of the interagency group is engaging directly with the company to provide details of supports available and to agree further engagement in line with the company’s overall engagement plan for the site and the affected employees.
Investment in the Sligo region has remained strong in recent years with a number of jobs announcements made over the past 12 months and it is hoped that the employees concerned will find employment with other enterprises in the region.
The Government remains committed to regional development and sustainable job creation, supported by both the IDA Strategy and the Regional Enterprise Plans.
Questions Nos. 8 to 13, inclusive, answered orally.
Enterprise Support Services
Questions (14)
Cormac Devlin
Question:14. Deputy Cormac Devlin asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on calls for a significant and immediate package of emergency energy supports for businesses to be made available under the new EU state aid framework. [45162/22]
View answerWritten answers
I think it is fair to say that this Government has not been found wanting when it has come to helping businesses get through difficult periods. The multi-billion euro financial assistance provided by Government during the pandemic was unprecedented, whether it was help with businesses’ wage bill so they could keep staff on, their overheads, the introduction of a cheaper, easier way to restructure and survive than examinership; the commercial rates waiver, or the reduction in VAT for the hospitality sector.
I'm very conscious of how worried businesses are now going into the winter and their concerns around energy costs. Unfortunately, Putin’s invasion of Ukraine is having massive consequences for the whole of Europe, not just Ireland.
My Department is working with the European Commission to allow us to grant state aid to certain businesses to help them with additional costs (both liquidity and energy costs) due to the Russian war on Ukraine.
We are working on a range of proposals to help businesses with rapidly rising energy prices and I hope to be able to make a positive announcement about that in the Budget.
We’ll also be looking to raise awareness around energy efficiency, helping businesses reduce the amount of energy they use in the first place and improving take-up of the approximately 20 different schemes we already have in place for business.
For example, in June we announced a new €55 million ‘Green Transition’ fund to help businesses move away from fossil fuels and towards more sustainable, cheaper alternatives.
Employment Rights
Questions (15)
Neasa Hourigan
Question:15. Deputy Neasa Hourigan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the current atypical working scheme is fully compliant with all relevant European Union law; and if he will make a statement on the matter. [45177/22]
View answerWritten answers
In most cases where a non-EEA national wishes to work in Ireland, he or she must apply to my Department for an employment permit. The employment permits system has been designed to ensure that the employment rights of migrants are observed. The Employment Permits Acts support employment rights compliance in the State and protection of employment rights for migrants by, inter alia, ensuring that there is a written contract of employment in place, prohibiting deductions from the remuneration of the permit holder for fees incurred in the application process and setting minimum remuneration levels.
Immigration and visa permission policy falls under the remit of the Department of Justice and non-EEA nationals seeking permission to enter the State must interact with the Department of Justice for entry and residence permission. The Atypical Working Scheme is one of the schemes operated by the Department of Justice to facilitate entry into the State.
The Atypical Working Scheme was developed and is run by the Department of Justice, in order to facilitate specialised, highly-skilled employment of a short term nature (generally less than 90 days) that is not supported by current employment permit legislation.
While the Atypical Working Scheme is outside of the employment permits process, it relies on the same terms and conditions applying to those granted employment permits. As with the Employment Permit Scheme, any contract offered must be in line with national and European employment law.
The Department of Justice recently led a cross departmental review group to consider the AWS for non-EEA crew in the Irish Fishing Fleet on the basis of ongoing criticism of the scheme by various stakeholders. My department was actively involved in the review and recommendations will be brought to Government.
The day to day running of the AWS scheme falls within the responsibility of the Minister for Justice.
Enterprise Support Services
Questions (16)
Bernard Durkan
Question:16. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures that may be taken to assist the retail sector that is currently seriously affected by increased energy and insurance charges which leave many in a precarious trading position; if it is expected that any such measures will be introduced at an early date; and if he will make a statement on the matter. [45097/22]
View answerWritten answers
As Chair of the Retail Forum, I am really conscious that many retail businesses in Ireland are worried as we face into a winter of uncertainty with rapidly rising costs, especially with increases in energy and insurance.
Unfortunately, energy supply is being used as a weapon of war, and it is having a major impact for families, businesses and workers across the country.
Government have already put in place some measures to help, and we are looking at how we can further assist businesses with their costs as part of the Budgetary process.
For example, retailers can complete the Climatetoolkit4business, available on my Department’s website, to assess their carbon emissions and identify what supports they are eligible for. A full list of Government grants including SEAI’s Energy Audit for SME, SEAI’s Accelerated Capital Allowance and the LEO’s Green for Micro programme, in addition to vouchers and training available can be accessed on my Department’s website.
I think it is fair to say that this Government has responded to the needs of retailers when it came to helping them and their workers get through the difficult periods of Covid and Brexit.
And we will continue to work with the retail community in advance of the Budget on measures that will help alleviate the unprecedented rise in operating costs, especially with energy prices, they face in the coming Winter months and into 2023.
We will monitor the situation very closely and will make sure that any taxpayers money is used to support businesses that are viable but vulnerable.
With regard to insurance, the Tánaiste chaired a meeting of the Subgroup on Insurance Reform in July 2022 to consider progress on implementation of the Action Plan for Insurance Reform. Approximately 80% of actions in the Plan are now being delivered. While progress on these actions is welcome, Government is committed to doing more to reduce insurance costs.
The Tánaiste is confident that through the implementation of the actions set out in the Action Plan we are delivering meaningful reform of the insurance market and creating the conditions for the provision of affordable insurance for consumers and business.
Labour Market
Questions (17)
Alan Farrell
Question:17. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on employment within the hospitality sector; and if he will make a statement on the matter. [44479/22]
View answerWritten answers
Responsibility for the hospitality sector is within the remit of Minister Catherine Martin, Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media.
According to the latest available national employment figures, from the CSO's Labour Force Survey, employment levels reached 2.55 million in Q2 2022. We now have more people employed in our country than ever before, while the quarterly unemployment rate stands at 4.4% - levels not seen since 2005.
It is especially welcome to see a strong recovery in the Accommodation and Food Service sector, with employment in this sector increasing by 40% in the past 12 months. In Q2 2022 employment had increased to 168,200; this consisted of 50,300 working in the accommodation sub-sector and 117,900 work in the Food and Beverage Service activities sub-sector. 57 percent of those working in the sector are female.
The impact of the pandemic was not equal across sectors, and those in the Hospitality sector were significantly affected. Our strong policy interventions during the pandemic – rapidly rolling out the Employment Wage Subsidy Scheme and Pandemic Unemployment Payment – appear to have minimised any long-term labour market scarring in the sector.
The increase in employment was also supported by the approval of employment permits for the sector. Since the start of May, 1,345 applications for Chefs have been processed by my Department. 30 permits for hotel and accommodation managers have also been issued, out of an available 350 in the quota announced in October 2021, with a further 11 awaiting processing.
Of those Ukrainians who have arrived under the protection of the EU’s Temporary Protection Directive, over 4,000 have also been integrated into roles in the Accommodation and Food sector.
Through EURES Ireland, which is managed by the Department of Social Protection, Irish hospitality opportunities have been a focus of EU recruitment events, and the EURES Ireland team have been working closely with Spain in particular in seeking to recruit for vacancies in Ireland.
Sustaining further increases in the hospitality workforce, however, will ultimately depend on the sector addressing its longstanding workforce recruitment and retention issues, which pre-date the Covid-19 pandemic.
I understand that the Tourism and Hospitality Careers Oversight Group, chaired by Fáilte Ireland under the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, is working to support these sectors in driving their long-term repositioning as appealing and rewarding career choices and ensure a future pipeline of talent.
My Department’s initiatives to improve workers’ rights, including the introduction of statutory sick leave, legislative protection of tips and gratuities, and the planned transition to a living wage, will work to support these efforts.
Question No. 18 answered orally.
Flexible Work Practices
Questions (19)
Michael Moynihan
Question:19. Deputy Michael Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on the remote working strategy. [45165/22]
View answerWritten answers
My Department published the National Remote Work Strategy on January 15th, 2021.
The Strategy identified 15 actions to ensure that remote work is a permanent feature in the Irish workplace in a way that maximises its economic, social and environmental benefits.
My Department is leading the implementation of the Strategy’s actions through an Interdepartmental Group and very significant progress has been made. I would highlight the following actions delivered by various Government Departments and agencies:
- The publication in January of the General Scheme on the Right to Request Remote Working Bill 2022. Officials in my Department are carefully considering the Final Report of the Joint Oireachtas Committee on the Bill which was published in July. I want to progress this Bill as quickly as possible.
- The publication of the Code of Practice on the Right to Disconnect in April 2021 by the Workplace Relations Commission.
- An enhanced income tax deduction of 30 percent of heat, electricity and broadband expenses for remote workers announced in Budget 2022.
- The launch of ConnectedHubs.ie- Ireland’s national digital hub network- in May 2021.
- The allocation of €5m in funding to 81 remote working projects across the country through the 2022 Connected Hubs Call. This follows the award of almost €9m via the 2021 Connected Hubs Call.
- To date, a total of approximately €100m has been provided by the Government through various funding streams to support the development of remote working infrastructure across the country.
- My Department launched new Regional Enterprise Plans to 2024 during spring 2022, which include a strong remote work focus.
-While the National Broadband Plan has been impacted negatively by COVID-19, the Department of Environment, Climate and Communications is continuing to engage with National Broadband Ireland to address the delays that have arisen, with delivery of the Plan having gained momentum in recent months.
- The publication of the Civil Service Blended Working Policy Framework by the Department of Public Expenditure and Reform in March.
- My Department is continuing to develop and promote its Guidance for Working Remotely webpage and Employer Checklist.
- The publication of an evaluation of the impacts of remote working in May which identified positive effects of remote work on productivity, the environment, regional development, private finances, and labour market participation.
I am satisfied that good progress is being made to ensure that Ireland is leading on remote work and supporting balanced regional and rural development.
National Minimum Wage
Questions (20)
Richard Boyd Barrett
Question:20. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on raising the minimum wage to €15 an hour, in light of the rising cost of living; and if he will make a statement on the matter. [45143/22]
View answerWritten answers
We want to reward work and ensure that work pays more. Minimum wage workers are among the hardest working people in Ireland and deserve to paid more particularly at a time or rising prices.
Yesterday, the Government agreed to accept the Low Pay Commission’s recommendation to increase the National Minimum Wage by 80 cent to €11.30 from the 1st of January 2023. At least 164,000 people, possibly more are estimated to be in line for this increase, with many others on slightly higher pay levels also getting a knock-on increase.
That works out at an extra €30 per week, around €120 a month or €1,664 a year if you’re working full-time.
Ireland has a well-established system for setting the minimum wage based on the Low Pay Commission and this system works well.
The Low Pay Commission is made up of an equal number of employer representatives, employee representatives, and independent members which helps to provide a balanced view when determining an appropriate rate for the National Minimum Wage. In addition, the establishing legislation requires the Low Pay Commission to give consideration to a range of issues when arriving at a recommendation for the appropriate National Minimum Wage rate. These issues include the cost of living, competitiveness and the likely effect that any proposed recommendation will have on future levels of employment. The Government respects the Commission and its independence.
As the Deputy is aware, I want to move from a minimum wage to a living wage so that work pays more.
I outlined proposals in June, after which we started a public consultation seeking submissions from the public on the Low Pay Commission’s recommendations and on a ‘strawman proposal’ which provided an illustrative example of how a living wage might be phased in over a 4-year timeframe. The public consultation closed in August. It received 46 submissions which are now being reviewed and analysed.
The work of an interdepartmental working group and the public consultation results will inform a final Government decision on the adoption of a living wage over a specified number of years. I expect to be able to make an announcement on this next month.
The new National Minimum Wage of €11.30 is in line with the living wage strawman proposal. As such, next year can be considered the first year of a proposed four-year path towards reaching the living wage of 60% of the median wage.